Human capital valuation: An improved model

Authors

• Deep Chatterjee, Indian Institute of Management Bangalore
• M Kalidas, Industrial Credit and Investment Corporation of India
• Kaushik Kundu, Capital One
• Pankaj Gautam, Indian Institute of Management Bangalore
• Sumit Shantanu, Indian Institute of Management Bangalore

Document Type

Article

Abstract

Human capital is one of the buzzwords of the knowledge society. The concept lay dormant for two centuries after Adam Smith first introduced it, but it was revived in the 1960s by American economists, such as Gary Becker and Jacob Mincer, who then exported it triumphantly around the world. Human capital is a beautifully unifying idea facilitating quantitative analyses. It is an excellent vehicle for framing policy discussions too, whether on schooling, training, or labor market performance. But companies differin the models they use to value human capital. An attempt has been made here to develop a model that can be used to value the human resources of organizations. Based on past literature on the subject and interviews with a company that has valued its employees, this model has been developed to eliminate some of the limitations of existing models.

Recommended Citation

Chatterjee, Deep; Kalidas, M; Kundu, Kaushik; Gautam, Pankaj; and Shantanu, Sumit (2001) "Human capital valuation: An improved model," IIMB Management Review: Vol. 13: Iss. 3, Article 4.
Available at: https://research.iimb.ac.in/imr/vol13/iss3/4

Publication Date

9-1-2001

First Page

47

Last Page

56